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Premiums To Soar As Accident Claims Lawyers Push Up Cost Of Motor Insurance, Mps Hear

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http://www.telegraph.co.uk/finance/personalfinance/insurance/motorinsurance/8119863/Premiums-to-soar-as-accident-claims-lawyers-push-up-cost-of-motor-insurance-MPs-hear.html

The Transport Select Committee was told that was no end in sight to the rises which have seen premiums go up by nearly 40 per cent over the past 12 months, with young drivers seeing a 51 per cent increase.

According to the latest figures the average premium in October reached £791, compared to £568 last year.

"If claims continue to rise at the rate that they have been increasing, rates will continue to increase as well," Duncan Anderson of the EMB Consultancy told MPs.

"Bodily injury claims are increasing at a rate of 30% and other claims types are increasing by five per cent a year."

"Overall there might be a 15% to 20% natural increase in claims costs if things continue as they are, which will be reflected in ever increasing premiums."

Such rises were unsustainable, Edmund King, the AA's president told the Committee.

Much of the blame rested with claims management firms, seeking damages for personal injury, who were held responsible for inflating the cost of insurance.

Should no win no fee be abolished?

Move towards more of an arbitration system?

More pressure being placed on budgets as costs spiral out of control.

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One of my mates who works in the insurance industry posted this on another forum last week.

RBS Insurance (Direct Line, Churchill, Privilege, NIG & Devitts) has just announced a £33million loss for Q3 2010, hot on the heels of a £203million for Q2 2010.

This is really bad news for everyone, as the loss driven by a massive increase in injurt claims in Motor insurance has effectively made the whole of this business unprofitable, writing off any profits made in household, pet and the Commercial business.

They've had to add £420million in the last 6 months to their reserves for injury claims payments.

The impact on us is that the biggest insurer in the UK is now losing money, so they've two options, either massive premium rises, which the rest of the market will match, or they withdraw completely. The latter means four of the biggest brands not selling car insurance (one has already withdrawn), so the market is less competitive and leaves others to increase prices even further.

On the plus side, I'll probably get a bigger bonus if that happens

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Yet another woefully transparent scam.

Motor insurance should be just that, where the cost of repairs to or replacement of motor vehicles as a result of an accident is paid for.

Personal injury insurance/liability is generally quoted as an additional premium.

Problem is that the two are being deliberately intertwined to scam us all into paying more for the same.

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Irrespective of broker has anyone else on here ever had a cover note or insurance certificate issued by a provider other than Zurich or Fortis?

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Yet another woefully transparent scam.

Motor insurance should be just that, where the cost of repairs to or replacement of motor vehicles as a result of an accident is paid for.

Personal injury insurance/liability is generally quoted as an additional premium.

Problem is that the two are being deliberately intertwined to scam us all into paying more for the same.

Errrr, are you new to driving by any chance? 3rd party liability?

:rolleyes:

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Errrr, are you new to driving by any chance? 3rd party liability?

:rolleyes:

How does having TPF&T prevent you from being sued for personal injury?

The whole personal injury thing is a scam, yet another scam designed to create work for those who are no good at doing anything of use to society.

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All legal fees paid by "injury lawyers" should be subject to 95% tax.

And bonus the fraud departments of the insurance companies with 50% of any money they recover.

The issue of insurance premiums would soon be sorted.

Yes living with the eye watering motor insurance premiums in Northern Ireland has made me bitter ;)

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How does having TPF&T prevent you from being sued for personal injury?

Third party insurance covers any injuries you inflict on others. Which is why third party only is the only insurance you legally require.

Of course, it doesn't cover injuries you inflict on yourself. But you can't sue yourself for them either :lol:

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Errrr, are you new to driving by any chance? 3rd party liability?

:rolleyes:

No, I wish.

3rd party liability provides the insured with cover for repairs to or replacement of a vehicle or vehicles belonging to others where the insured has been proven responsible for causing damage to same.

The insured undertakes to either repair or replace his/her own vehicle at his/her cost.

Not all that complicated really.

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No, I wish.

3rd party liability provides the insured with cover for repairs to or replacement of a vehicle or vehicles belonging to others where the insured has been proven responsible for causing damage to same.

The insured undertakes to either repair or replace his/her own vehicle at his/her cost.

Not all that complicated really.

If you're not new to it, then you are a bit dim.

"Third party only

This cover is the legal requirement. This level of cover ensures that compensation is available in respect of injury to other people (including your passengers) or damage to other peoples' property resulting from an accident caused by you. It doesn't cover any costs incurred by you as the result of an accident."

http://www.direct.gov.uk/en/Motoring/OwningAVehicle/Motorinsurance/DG_067630

I find the level of ignorance on this website shocking, it's no wonder most of you are renting a house.

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Average premiums a few hundred? Pfft!

If we valued each death on the roads the same as deaths on the rails, it wouldn't be hundreds. Not even thousands. It would be something over £20k. This massive distorting subsidy to motorists is of course why rail travel costs so much.

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I prefer my solution.

Anyone caught faking an injury has to pay the insurance company the same amount of money they would have received, then be forced to suffer the injury they pretended they had.

Or just build more prisons and tripple all sentences. Keep building prisons until people stop commiting insurance fraud.

Edited by RufflesTheGuineaPig

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Third party insurance covers any injuries you inflict on others. Which is why third party only is the only insurance you legally require.

Of course, it doesn't cover injuries you inflict on yourself. But you can't sue yourself for them either :lol:

There is virtually no difference between the cost of third party insurance and comprehensive insurance nowadays because the majority of insurance payouts are personal injury claims, not claims for damage to the insured vehicle.

When I started driving, third party insurance was half the cost of comprehensive. In recent years I have been quoted more for third party than for comprehensive because of the above.

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Third party insurance covers any injuries you inflict on others. Which is why third party only is the only insurance you legally require.

Of course, it doesn't cover injuries you inflict on yourself. But you can't sue yourself for them either :lol:

Why are you screaming with laughter - there are zillions of cases of banks and companies which ended up suing themselves - such is the twisting of laws by money grabbing lawyers for their personal gain!

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This is what happens when you have a country ran by lawyers.

Imo there should be a national insurance corporation that pays out auto damage related expenses. And any personal injury can fall upon the health care system, disability to fall on the disability insurance system that we already have. Everything should be done by administrative decisions.. nothing involving a court of law.

Other countries in the world do the system I just described and it works fine with reasonable insurance costs.

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If you're not new to it, then you are a bit dim.

"Third party only

This cover is the legal requirement. This level of cover ensures that compensation is available in respect of injury to other people (including your passengers) or damage to other peoples' property resulting from an accident caused by you. It doesn't cover any costs incurred by you as the result of an accident."

http://www.direct.gov.uk/en/Motoring/OwningAVehicle/Motorinsurance/DG_067630

I find the level of ignorance on this website shocking, it's no wonder most of you are renting a house.

Well, that is nice of you.

Edited by Flatdog

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I find the level of ignorance on this website shocking, it's no wonder most of you are renting a house.

You are willy-waving because you have a mortgage? At a time like this?

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How does having TPF&T prevent you from being sued for personal injury?

The whole personal injury thing is a scam, yet another scam designed to create work for those who are no good at doing anything of use to society.

If you sue someone for personal injury following an accident, surely the insurance company covers your financial liability if you lose (or settle out or court). Hence the 'third party' part of TPF&T.

If I'd read the whole thread Id have seen people already said this - d'oh!

Edited by picador

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My car insurance covers me for EVERY eventuality and I pay a fair premium for it. ;)

My boat insurance of which the value is 10x my car is appx 60% less than my car insurance. ;)

Car Insurance £495, Boat Insurance £215 for £3 million cover in any claim. :)

In fact in real terms over the past 10 years my car premium has actually taking inflation into account fallen by 20%.

I love that little dog. :rolleyes:

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They need to reverse this trend, or we will end up with more and more people either unable to afford the premiums, or lying to afford it, or just driving uninsured. This is in no-ones interest, really.

If I was somewhat younger, and through no fault or action of my own, was totally unable to afford to insure a car for years cos it cost £3000 or something, then I would have to cheat and lie to get what I want.

And I would be right.

On the grounds that I only get one life, and if the world won't give what i want by playing by the rules, then it's OK to cheat.

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Should no win no fee be abolished?

Move towards more of an arbitration system?

More pressure being placed on budgets as costs spiral out of control.

Another grand idea brought to you by New Labour - as if it wasn't obvious at the time what was going to happen.

What distresses me is that upon returning to Australia last year I was presented with a billboard proclaiming that the new Business of the Year in Queensland was a no win/no fee legal firm. It leaves one with no faith in our politicians when they seem so happy to introduce systems that have been repeatedly proven to be disasters for the common weal.

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The same scare happened in Ireland ten years ago. And New Zealand before that.

Result: road traffic claims taken out of the judicial system and delivered into the lap of government bureaucracy. As far as I know, insurance charges did not decline, and solicitors made even more money for even less effort. I guess there are stats to show this.

Insurance companies have the same motives as banks - cheaper and nastier, at someone else's expense. Who cares about justice?

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My renewal came through yesterday from Privilege. I've been with them for 6 years and the premium crossed the 500 quid threshold for the first time! Amazing really as in 2006 when I bought the vehicle in question (8 months old), the premium was £320 so in four years it had doubled for the same vehicle that is now worth far less than it was in 2006.

So, I visited MSE and took all their advice and shopped around for different quotes...and the Privilege quote was still cheaper??? So I took up the last bit of advice that good old Martin gave and that was to "phone" my existing insurer! I was expecting a hard sell...but I didn't get one! When I told the chap "I'm not happy at this increase" he immediatly put me through to the loyalty dept! LOL!!!!! The lady on the other end asked me to check my MOT certs (which I did have on hand) and told me that my estimated mileage should be a lot lower based on the mileage recorded on the MOT certs 2009/2010. She asked if the old man ever drove the car and I replied "yeah once in a blue moon when he picks me up from the pub"...she added him to the insurance and that knocked off approx 100 quid...blah blah freakin blah! Also, they amended my insurance to SDP and to and from work because when I first bought the car I was using it for work purposes as I had an allowance. But back in the days of cheap money, the addition of business use made no f*cking difference! But now? It's a fooking money magnet!

Anyway, we got the premium down to £440, still fully comp with courtesy car and excess of £150 plus voluntary excess £250 (which is what it's always been) 90 day cover in Europe (other quotes wanted more dollar for that).

It's stll a rise but I'm happy with that figure! The vehicle is a performance car with approx 260 BHP on a 2006 plate. I have no convictions and 15 years no claims (not that they care much about that).

Anyway, the lady on the line did seem genuinely interested in helping me out on the qoute without cutting corners...so for once I was quite surprised!

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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